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Segment Disclosures (Tables) | 6 Months Ended
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Jun. 30, 2015
Segment Disclosures |
Information of revenue of reportable segment (in thousands) | For the three months ended June 30, 2015:
|  |  |  |  |  |  |  |  |  |  | Investment |  |  |  |  |  |  |  |  |  |
|  | Rental |  | Resident Fees |  | Interest |  | Management |  | Total |  |  |  | Adjusted |
Segments |  | Revenues(1) |  | and Services |  | Income |  | Fee Income |  | Revenues |  | NOI(2) |  | (Cash) NOI(2) |
Senior housing |  | $ | 123,910 |  | $ | 106,838 |  | $ | 12,237 |  | $ | — |  | $ | 242,985 |  | $ | 154,234 |  | $ | 155,472 |
Post-acute/skilled |  |  | 130,895 |  |  | — |  |  | 23,708 |  |  | — |  |  | 154,603 |  |  | 130,357 |  |  | 111,280 |
Life science |  |  | 85,409 |  |  | — |  |  | — |  |  | 1 |  |  | 85,410 |  |  | 68,175 |  |  | 65,430 |
Medical office |  |  | 102,585 |  |  | — |  |  | — |  |  | 457 |  |  | 103,042 |  |  | 61,800 |  |  | 60,630 |
Hospital |  |  | 21,492 |  |  | — |  |  | — |  |  | — |  |  | 21,492 |  |  | 20,221 |  |  | 20,447 |
Total |  | $ | 464,291 |  | $ | 106,838 |  | $ | 35,945 |  | $ | 458 |  | $ | 607,532 |  | $ | 434,787 |  | $ | 413,259 |
For the three months ended June 30, 2014:
|  |  |  |  |  |  |  |  |  |  | Investment |  |  |  |  |  |  |  |  |  |
|  | Rental |  | Resident Fees |  | Interest |  | Management |  | Total |  |  |  | Adjusted |
Segments |  | Revenues(1) |  | and Services |  | Income |  | Fee Income |  | Revenues |  | NOI(2) |  | (Cash) NOI(2) |
Senior housing |  | $ | 151,904 |  | $ | 37,939 |  | $ | 3,430 |  | $ | — |  | $ | 193,273 |  | $ | 165,020 |  | $ | 153,476 |
Post-acute/skilled |  |  | 138,548 |  |  | — |  |  | 13,507 |  |  | — |  |  | 152,055 |  |  | 138,015 |  |  | 122,105 |
Life science |  |  | 77,541 |  |  | — |  |  | — |  |  | 1 |  |  | 77,542 |  |  | 62,092 |  |  | 59,339 |
Medical office |  |  | 91,541 |  |  | — |  |  | — |  |  | 443 |  |  | 91,984 |  |  | 54,376 |  |  | 53,770 |
Hospital |  |  | 21,267 |  |  | — |  |  | — |  |  | — |  |  | 21,267 |  |  | 20,370 |  |  | 20,475 |
Total |  | $ | 480,801 |  | $ | 37,939 |  | $ | 16,937 |  | $ | 444 |  | $ | 536,121 |  | $ | 439,873 |  | $ | 409,165 |
For the six months ended June 30, 2015:
|  |  |  |  |  |  |  |  |  |  | Investment |  |  |  |  |  |  |  |  |  |
|  | Rental |  | Resident Fees |  | Interest |  | Management |  | Total |  |  |  | Adjusted |
Segments |  | Revenues(1) |  | and Services |  | Income |  | Fee Income |  | Revenues |  | NOI(2) |  | (Cash) NOI(2) |
Senior housing |  | $ | 251,292 |  | $ | 211,851 |  | $ | 19,631 |  | $ | — |  | $ | 482,774 |  | $ | 311,119 |  | $ | 305,944 |
Post-acute/skilled |  |  | 271,471 |  |  | — |  |  | 49,576 |  |  | — |  |  | 321,047 |  |  | 270,400 |  |  | 233,240 |
Life science |  |  | 168,960 |  |  | — |  |  | — |  |  | 2 |  |  | 168,962 |  |  | 135,027 |  |  | 129,207 |
Medical office |  |  | 200,890 |  |  | — |  |  | — |  |  | 916 |  |  | 201,806 |  |  | 121,853 |  |  | 118,817 |
Hospital |  |  | 43,734 |  |  | — |  |  | — |  |  | — |  |  | 43,734 |  |  | 41,426 |  |  | 41,904 |
Total |  | $ | 936,347 |  | $ | 211,851 |  | $ | 69,207 |  | $ | 918 |  | $ | 1,218,323 |  | $ | 879,825 |  | $ | 829,112 |
For the six months ended June 30, 2014:
|  |  |  |  |  |  |  |  |  |  | Investment |  |  |  |  |  |  |  |  |  |
|  | Rental |  | Resident Fees |  | Interest |  | Management |  | Total |  |  |  | Adjusted |
Segments |  | Revenues(1) |  | and Services |  | Income |  | Fee Income |  | Revenues |  | NOI(2) |  | (Cash) NOI(2) |
Senior housing |  | $ | 301,989 |  | $ | 75,992 |  | $ | 6,714 |  | $ | — |  | $ | 384,695 |  | $ | 328,610 |  | $ | 303,851 |
Post-acute/skilled |  |  | 276,328 |  |  | — |  |  | 26,919 |  |  | — |  |  | 303,247 |  |  | 275,263 |  |  | 240,204 |
Life science |  |  | 153,663 |  |  | — |  |  | — |  |  | 2 |  |  | 153,665 |  |  | 124,053 |  |  | 118,168 |
Medical office |  |  | 180,803 |  |  | — |  |  | — |  |  | 891 |  |  | 181,694 |  |  | 108,122 |  |  | 106,799 |
Hospital |  |  | 42,812 |  |  | — |  |  | — |  |  | — |  |  | 42,812 |  |  | 40,965 |  |  | 41,136 |
Total |  | $ | 955,595 |  | $ | 75,992 |  | $ | 33,633 |  | $ | 893 |  | $ | 1,066,113 |  | $ | 877,013 |  | $ | 810,158 |
| (1) |  | Represents rental and related revenues, tenant recoveries and income from DFLs.
| (2) |  | NOI and Adjusted NOI are non-GAAP supplemental financial measures used to evaluate the operating performance of real estate. The Company defines NOI as rental and related revenues, including tenant recoveries, resident fees and services, and income from DFLs, less property level operating expense; NOI excludes all other financial statement amounts included in net income (loss) as presented below. The Company believes NOI provides relevant and useful information because it reflects only income and operating expense items that are incurred at the property level and presents them on an unleveraged basis. Adjusted NOI is calculated as NOI after eliminating the effects of straight-line rents, DFL accretion, amortization of market lease intangibles and lease termination fees. Adjusted NOI is oftentimes referred to as “cash NOI.” The Company uses NOI and adjusted NOI to make decisions about resource allocations, and to assess and compare property level performance, and evaluate its same property portfolio. The Company believes that net income (loss) is the most directly comparable GAAP measure to NOI. NOI should not be viewed as an alternative measure of operating performance to net income (loss) as defined by GAAP because it does not reflect various excluded items. Further, the Company’s definition of NOI may not be comparable to the definition used by other REITs or real estate companies, as those companies may use different methodologies for calculating NOI.
Reconciliation of reported net (loss) income to NOI and adjusted NOI (in thousands) |
|  | Three Months Ended June 30, |  | Six Months Ended June 30, |
|  | 2015 |  | 2014 |  | 2015 |  | 2014 |
Net income (loss) |  | $ | 167,748 |  | $ | 222,279 |  | $ | (69,755) |  | $ | 485,902 |
Interest income |  |  | (35,945) |  |  | (16,937) |  |  | (69,207) |  |  | (33,633) |
Investment management fee income |  |  | (458) |  |  | (444) |  |  | (918) |  |  | (893) |
Interest expense |  |  | 118,632 |  |  | 106,842 |  |  | 235,412 |  |  | 213,480 |
Depreciation and amortization |  |  | 120,403 |  |  | 113,133 |  |  | 234,925 |  |  | 220,521 |
General and administrative |  |  | 28,845 |  |  | 21,656 |  |  | 53,618 |  |  | 42,555 |
Acquisition and pursuit costs |  |  | 18,407 |  |  | 7,406 |  |  | 21,797 |  |  | 7,901 |
Impairments |  |  | 44,835 |  |  | — |  |  | 523,299 |  |  | — |
Gains on sales of real estate, net of income taxes |  |  | (61) |  |  | — |  |  | (6,325) |  |  | — |
Other income, net |  |  | (11,055) |  |  | (709) |  |  | (12,779) |  |  | (2,639) |
Income tax (benefit) expense |  |  | (4,563) |  |  | 1,339 |  |  | (4,640) |  |  | 2,785 |
Equity income from unconsolidated joint ventures |  |  | (12,001) |  |  | (14,692) |  |  | (25,602) |  |  | (29,220) |
Total discontinued operations |  |  | — |  |  | — |  |  | — |  |  | (29,746) |
NOI |  |  | 434,787 |  |  | 439,873 |  |  | 879,825 |  |  | 877,013 |
Straight-line rents |  |  | (8,202) |  |  | (12,487) |  |  | (17,748) |  |  | (26,455) |
DFL accretion |  |  | (21,210) |  |  | (17,813) |  |  | (41,514) |  |  | (39,235) |
Amortization of above and below market lease intangibles, net |  |  | (258) |  |  | (175) |  |  | (636) |  |  | (343) |
Lease termination fees |  |  | 8,142 |  |  | (233) |  |  | 9,185 |  |  | (811) |
NOI adjustments related to discontinued operations |  |  | — |  |  | — |  |  | — |  |  | (11) |
Adjusted (Cash) NOI |  | $ | 413,259 |  | $ | 409,165 |  | $ | 829,112 |  | $ | 810,158 |
Reconciliation of company's assets to total assets (in thousands) |
|  | June 30, |  | December 31, |
Segments |  | 2015 |  | 2014 |
Senior housing |  | $ | 9,449,641 |  | $ | 8,383,345 |
Post-acute/skilled nursing |  |  | 6,511,511 |  |  | 6,875,122 |
Life science |  |  | 4,187,616 |  |  | 4,154,789 |
Medical office |  |  | 3,404,395 |  |  | 2,988,888 |
Hospital |  |  | 639,807 |  |  | 640,253 |
Gross segment assets |  |  | 24,192,970 |  |  | 23,042,397 |
Accumulated depreciation and amortization |  |  | (2,778,924) |  |  | (2,600,072) |
Net segment assets |  |  | 21,414,046 |  |  | 20,442,325 |
Other non-segment assets |  |  | 934,081 |  |  | 927,615 |
Total assets |  | $ | 22,348,127 |  | $ | 21,369,940 |

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